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Individual farm exit decisions in Croatian family farms

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  • Judith Mollers
  • Jana Fritzsch

Abstract

Successful structural change in agriculture depends on several preconditions, some of which are only indirectly linked to the farming sector. The rural non-farm economy is known as one important driver of structural change because it offers alternative employment. However, little is known about the factors that influence farm exit decisions. Based on a recent household survey of Croatian family farms, we analyse individual employment decisions of farm household members by taking a prospective look at developments to come in the medium term. We find that mixed activities and part-time farming will be at the core of expected future developments. A cumulative logit regression model is employed, showing that steps toward individual farm exit are least likely for elderly people and for those in households that are particularly successful in farming. Individual exit is more likely for better-off households. Generally, we find that there is a clear trend toward non-farm employment for individuals, but there are hardly any indications that this leads to final abandonment of the farm.

Suggested Citation

  • Judith Mollers & Jana Fritzsch, 2010. "Individual farm exit decisions in Croatian family farms," Post-Communist Economies, Taylor & Francis Journals, vol. 22(1), pages 119-128.
    • Handle: RePEc:taf:pocoec:v:22:y:2010:i:1:p:119-128
    DOI: 10.1080/14631370903525645
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    References listed on IDEAS

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    1. repec:kap:iaecre:v:14:y:2008:i:4:p:381-394 is not listed on IDEAS
    2. Marian Rizov & Erik Mathijs, 2003. "Farm Survival and Growth in Transition Economies: Theory and Empirical Evidence from Hungary," Post-Communist Economies, Taylor & Francis Journals, vol. 15(2), pages 227-242.
    3. Judith Möllers & Patrick Zier & Gertrud Buchenrieder, 2008. "Expectations, Strategies and Prospects of Farmers in View of Croatia’s Pending EU Accession," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 14(4), pages 381-394, November.
    4. Hoppe, Robert A. & Korb, Penelope J., 2006. "Understanding U.S. Farm Exits," Economic Research Report 7212, United States Department of Agriculture, Economic Research Service.
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    Cited by:

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    2. Vratislava Janovska & Petra Simova & Josef Vlasak & Petr Sklenicka, 2017. "Factors affecting farm size on the European level and the national level of the Czech Republic," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 63(1), pages 1-12.
    3. Plogmann, Jana & Mußhoff, Oliver & Odening, Martin & Ritter, Matthias, 2022. "Farm growth and land concentration," Land Use Policy, Elsevier, vol. 115(C).
    4. Sarah Ann Wheeler & Alec Zuo, 2017. "The impact of drought and water scarcity on irrigator farm exit intentions in the Murray–Darling Basin," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 61(3), pages 404-421, July.
    5. Elodie Douarin & Laure Latruffe, 2011. "Potential impact of the EU Single Area Payment on farm restructuring and efficiency in Lithuania," Post-Communist Economies, Taylor & Francis Journals, vol. 23(1), pages 87-103.
    6. Sarah Ann Wheeler & Ying Xu & Alec Zuo, 2020. "Modelling the climate, water and socio-economic drivers of farmer exit in the Murray-Darling Basin," Climatic Change, Springer, vol. 158(3), pages 551-574, February.
    7. Radosław PASTUSIAK & Magdalena JASINIAK & Michał SOLIWODA & Joanna STAWSKA, 2017. "What may determine off-farm income? A review," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 63(8), pages 380-391.

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